Navarre Q1 Profits Up On Strong Anime Sales29 Jul, 2009 By: Chris Tribbey
Navarre Corp., which includes subsidiaries Funimation and Encore, saw its fiscal 2010 first quarter sales down 5%, from $142 million to $134 million in the second quarter of 2008.
However, the Minneapolis-based company enjoyed a net profit of $4.2 million during the three-month period ended June 30, up from $627,000 during the same period in fiscal 2009.
“The quarter beat our expectations in part due to Funimation’s stronger-than-anticipated sales of anime DVDs, as well as a $1.75 million agency fee resulting from a royalty advance paid for the licensing of ‘Dragon Ball’ video game rights to Bandai,” said Navarre CEO Cary Deacon. “While our industry continues to be impacted by the global economic crisis, we are extremely pleased to be able to report record first quarter operating income.”
Navarre also reduced its debt by 52% during the quarter, from $48.7 million to $23.2 million.
“Good working capital management, which included strong cash collections in the quarter, led to a significant debt reduction and interest expense savings versus the prior year,” said CFO Reid Porter.